U.S.- Russia Trade Agreement

[farmers_son]

Does Canada have a similar agreement as this? Unless we do, it would appear that the U.S. would have an advantage exporting beef to Russia once the BSE hurdle is overcome. Selling beef internationally is not like going to the farmers market and setting up a booth. The road to increased beef sales must first be paved with economic agreements such as this. If Russia has made this deal with the U.S. and not a similar arrangement with Canada, then more Canadian beef will first flow into the U.S. before it makes its way into international markets thereby adding value south of the border instead of in Canada.

http://www.cattlenetwork.com/content.asp?contentid=5319

Cattle Alert: NCBA Praises U.S.-Russia Trade Agreement

Washington, D.C. (June 15, 2005) - The National Cattlemen's Beef Association (NCBA) is pleased with the new agreement between the United States and Russia establishing specific terms of access for U.S. beef, poultry and pork in the Russian market. U.S. Trade Representative Rob Portman announced the signing of the agreement today, formalizing terms originally reached in principle in September 2003.

Russia remains closed to U.S. beef following confirmation of a single case of bovine spongiform encephalopathy (BSE) in December 2003. However, the new agreement clarifies the economic terms that will define re-entry of U.S. beef into the Russian market once concerns about BSE have been addressed.

"Unfortunately, with the Russian market closed to U.S. beef, the impact of this new agreement will not be immediate," says Jim McAdams, NCBA president and an Adkins, Texas, cattleman. "But it is important for cattlemen to realize that a lot of work still must be done to ensure a favorable economic climate for U.S. beef once this market re-opens. NCBA is very supportive of the effort invested by USTR to finalize this agreement."

The agreement defines the playing field and enhances the business climate for exporters of U.S. products, according to Chief Agricultural Negotiator Allen F. Johnson.

“With the signing of this agreement, U.S. exporters of poultry, beef and pork will have a more predictable market in Russia,” Johnson said.

The agreement confirms a special mechanism by which the United States may export a specific quantity of each of these products at a mutually agreed tariff level. Quantities above these special measures would be subject to a higher tariff, operating in a manner similar to tariff-rate quotas.

[cowman]

Russia sure should be treating us well after all the years we sold them grain...and never got paid for it! I would hope if we have a deal with Russia on meat, it is cash up front? But then they probably wouldn't "buy" it?
I wonder why any country would want to deal with Russia when they don't pay their bills? The way Canada finances exports to these shaky countries is a scandal!

[cowman]

agreed cowman, we need to be paid for our product unless we are providing aid for third world countries.

[farmers_son]

Canada sold wheat to Iraq on credit. That debt to Canada was forgiven as part of Canada's contribution to rebuilding the country.

http://www.agr.gc.ca/itpd-dpci/english/country/russia_e.htm

In 2001, Russia's agricultural import market was valued at $13 billion. Of this, $89 million were made up of Canadian exports. In 2001, Canada's top five exports to Russia, listed from greatest to least, were frozen pork cuts, tobacco, frozen pork edible offal, hams and shoulders, and frozen poultry cuts. However, Canada has identified strong potential for exporting other products such as beef, peas, lentils, and canola, now or in the near future.

[cowman]

I wonder how many of our exports are sold under credit deals made by CEDA? And how much of the actual price is ever recovered?
How much money was paid out to the Iraq deal? How a bout the Russian and Polish deals?
If you owned a share in a company that was giving out credit to every shaky country in the world would you be happy? If the board of directors told you they had written off the debt as an act of charity, would you be glad that you had invested in such an enlightened company?
Now maybe you would, but I can ensure you I would be calling for their heads! Now please tell me, how is a country any different than a company?

[farmers_son]

Canada forgave Iraq's debt of $750 million, all of which was owed to the CWB.

The U.S. leads the world in giving away or subsizing food aid as a political tool. The thinking is that it is cheaper than bombs.

You might be interested in an article entitled "A Country is Not a Company" published by the President and Fellows of Harvard College. See:
http://www.pkarchive.org/trade/company.html